London Olympics 2012: Human Resources - Term Paper Example

Table of Contents 1. Introduction 3 2. Recruitment & Retention Rationale 5 Local recruitment 6 Overseas Recruitment 8 Outsourcing 9 Education-industry partnerships 10 Retention 11 3. Training & Development Rationale 12 Technology 13 4. Motivation 15 5. Conclusion 16 References 17-18 Report on Impact on London Olympics 2012 Of Management of Human Resources in Hospitality Sector Introduction When London hosts the Olympic Games in 2012, it will be a mammoth task for the UK’s workforce to make sure everything- from buildings and infra-structure to hospitality and telecoms is ready for the estimated 500,000 extra overseas visitors (Personnel Today). According to Simon Clegg, Chief Executive of the British Olympic Association (London2012), an Olympic village has been designed where the ‘aspirations are to create an Olympic Village which will reflect the efficiency of Sydney, the quality of the living accommodation in Athens and the carnival atmosphere that we experienced in Barcelona’. This is a marathon effort but an excellent opportunity for the Human Resources department in UK. The role of the head of HR will have to be strategic and influential, and focused on delivery (Karen Dempsey). It is estimated that 12,000 new jobs will be created because of the development of the Olympic Park area (People 1st). The two main areas that will have an impact are the hospitality sector and the construction sector. Employment in the hospitality industry is growing at a rate faster than overall employment in the UK (People 1st). The hospitality sector has been behind the games bid but the shortage in this industry has always existed because it is either tough or underpaid for the British. Besides, the unemployment is very low (Encore Personnel) and with baby boomers retiring soon, there will be an increased gap between the demand and supply. Training for the skilled workforce has to start now to ensure smooth operations. In view of the above, the greatest challenge before the HR department will be recruitment of the skilled personnel, and retention and motivation of the existing personnel. The success of the Olympics depends entirely upon the skills and the commitment of the people involved. Hence, the three core areas where HR has to concentrate are recruitment and retention, motivation, learning and development. Recruitment & Retention Rationale The hospitality sector comprises of hotels, providers of holiday accommodation, pubs and bars, restaurants and take away food outlets (Low pay Commission Report 2005). It is probably the world’s fastest growing, job-creating profession (Hospitality: As it is). The hospitality industry exhibits tremendous diversity both with respect to the types of jobs on offer and the workers required. (Migration: A Welcome Opportunity). There is a huge shortage in the hospitality sector and it is estimated that the industry will require 30000-35000 trained people by 2010 at the management and supervisory level to fill the gap. At the same time, there are very few students taking courses in hospitality to sustain this requirement (Hospitality: As it is). The job cycle in the hospitality sector is very small, with a very high turnover of staff. Recruitment locally The continued growth in the industry is hampered by the ongoing recruitment problems. This in turn affects the performance of the sector and would cause increased problem during the Olympics. The relationship between skills and performance is borne out across the hospitality, leisure, travel and tourism sector (People 1st). The industry faces difficulty in meeting customer service objectives and quality standards. The native worker does not prefer this industry because of low pay, more hours of work and seasonal demand. The only way to attract people to this industry is to bring about innovative changes. The minimum wages have to be given and the hours of work have to be flexible to suit the individual requirements. Incentives have to be provided. There has to be strict adherence to the maximum number of hours that any one can be allowed to work. Unless these changes are brought about, this sector would not be able to attract quality staff as in other areas. This sector has tremendous potential and challenges but lacks the right managerial staff. Action has to start immediately to equip for the Olympics in 2012. Due to declining fertility and rising life expectancy, the ageing population presents a challenge for any industry. Employability of the older generation is being considered and the notion that adults cannot be trained is being reviewed. Perhaps, the hospitality sector too should look into this angle and impart training with enough time in hand. The core occupations like the chefs and waiters could be given to the younger staff while the additional occupations like marketing, finance and administration could be left for the older age group. Perhaps new skills or skills different from what they have been working all through could be an incentive and make work interesting for them. Flexible and part-time working could also help fill the skills gap as more men and women now wish to spend more time with their children. Cathy Donnelly, Head of Human Resources of Botanic Inns, which owns 13 bars says offering career breaks help retain staff in this high turnover industry (Britain’s hidden brain drain). Long periods of unpaid leave are granted. The company in this process retains motivated and trained staff thereby reducing training and recruiting new people. Recruitment from overseas This industry has looked overseas to meet its growing needs. The migrant workers find it suitable because he earns much more than he would back home although the local people resent the influx of migrants. Hilton London is looking at working with food preparation colleges to train staff. The hotel group may also look outside the UK to bring in extra staff or bring in from other Hilton hotels to see through the busy period. Helen Kaylan, head of HR at Novotel London hotels, too agrees the sector must look outside the UK to guarantee a full workforce. Sydney had high unemployment rate so filling the gap was not a problem but UK has very low unemployment rate. The commercial director of caterer.com feels online recruitment would help to step up recruitment and reduce the recruiting expenses (Personnel Today). Novotel is recruiting from Poland and Romania but this could also result in housing problems for foreigners. Immigrants are being looked into favorably by this sector because the payroll remains low, it brings in new talent and helps in the UK’s economy. They contribute towards taxes while the health expenses on them are low as most are young people. Besides, since people from different nations would converge for the Olympics, work force from different cultures and nations would help to fill this gap to some extent. Outsourcing While most areas require low skills, getting chefs is a perennial problem. Recruiting chefs from overseas or outsourcing catering jobs is another way to combat the shortage. In fact, outsourcing during the 2012 games would be ideal, as it would not amount to permanent employment. At the moment there are 100,000 vacancies in the sector. As per the Intelligence Skills (2005) this industry spends ВЈ886 million a year dealing with high staff turnover and retention problems. When London hosts the Olympics in 2012 this is expected to go up to BJ6.2 billion. Education – industry partnerships During the Sydney Olympics, students in the Hotel, Restaurant and Institutional Management program were given academic credits who helped develop operating plans; design menus; develop and implement appropriate food and safety guidelines; establish and maintain all necessary information technology and office management systems (Intercom online). Such apprentice scheme in partnership with food preparation colleges is a great way as they provide hands-on-training to the students. The gap in skilled supply can also be filled to a large extent. The HR managers too have to be trained effectively to handle talent management, flexible working hours, training and development of labour, more women should be encouraged and child care facility provided. At the time of Olympics, the job may be more demanding and hence arrangements should be made to intensify support to the family. This would encourage more people to opt for this industry. Retention Retention is a major aspect of the labour market dynamics. Because of the high turnover of staff, employers are not willing to spend on training and development. This is one of the reasons of lack of motivation. It is a vicious circle because the high turnover of staff results in fresh recruitment, which is expensive. The reasons for retention include lack of motivation, unsociable and long working hours, and low wages. Besides, to cut costs, employers request the staff to put in more work without increase in benefits. For the Olympics the industry has to ensure adequate compensation for the labour. To retain staff for the 2012 games calls for focused strategy from today. Learning and Development Rationale Skill shortages are a measure of the skills lacking in job aspirants. Due to this hard-to-fill vacancies exist in the industry (People 1st). It is not merely the qualifications that are considered but the overall personality and experience of the person is also important. Due to the shortage in skilled labour, employers have to first recruit and then train and develop them. When the staff lacks the skill they motivation level too is low. Training and development can help motivate them to the desired level. Developing employees can take place through formal training but most of the training and development come from actual experience in the field. The job can be challenging because it requires flexibility to deal with continuing changes at any time during the day. The customer and employee interact at a higher level and this is an intellectual challenge for the new entrants in this industry. Technology Technology is gradually pervading the human resource domain (IHRA). This calls for higher levels of technological skills from all employees. This would help produce satisfied customer, increase business and improve efficiency. Hence, the HR department should strategize on incorporating technology in the training of the new work force. Managing employees is a major job. The HR managers have to understand the key skills that is required in their industry. Training needs have to be identified. There are too few people with the required skills especially in customer care, communication and team-working. The management of HR itself can be transformed through technology. Jobs like recruitment, switching jobs functions, to updating skills, record keeping, performance evaluation, compensation, can be impacted. Technology can be further used to teach leadership and value-added skills to the fresh recruits. Hospitality education is moving from heavy skilled-based focus to strong operational content. Emphasis should be laid on thinking and analytical skills. Generating, analyzing, and managing information is important for growth. Quality labour is necessary in the current scenario. Technology is altering the business scenario and technology should be incorporated to maximize customer satisfaction. Motivation Options and careers opportunities are unlimited in the hospitality industry. Apart from training, an attitude of service has to be instilled into the staff. They must be motivated to enjoy the service and not take it as a duty to ‘smile’. Leadership qualities need to be developed, which itself gives confidence and moral boost to the employee. In the hospitality industry, rapid changes are normal and flexibility in corporate rules would help to satisfy the discerning clients. Anticipating guest requirements is essential for the success of the HR. If such activities could be encouraged through employee-rewards, it could give a thrust to the service sector. Right from the beginning the work force should be inducted into the culture of the organization, have exposure to cross-functional activities. He should be made to feel a part of the organization where he is encouraged to make suggestions. Career development opportunities would also help attract right people as stagnancy is very common in this industry. Motivation can be the hardest thing to maintain but the most powerful tool. Conclusion Seoul and Barcelona had low-profile tourism industries at the time of the games and did benefit with growth in the hospitality sector post-Olympics (Keiron Ritchard). London, as a tourist destination is already popular but lacks in skilled people interested to work in the industry. Perhaps, the Olympics 2012 could infuse interest in the people; perhaps the hospitality industry could gain by attracting, training and developing the youth at this time. This could have long-term benefits for the sector as a whole. Staying focused will be the greatest challenge to the hospitality industry at this time. The HR policies should have a strategic focus on recruitment both locally and overseas, be able to motivate and retain the existing employees. Expenses on recruitment should be kept low as it has been seen that immediately after the Olympics there is a lull in the industry. This is expected because a large number of rooms and hotels have been added specifically for the games. These would remain vacant immediately after. A focused move could result in overall popularity of the industry for times to come. Outsourcing and tie-up with educational institutions, providing hands-on training, use of technology in managing human resources, using motivational techniques and performance related bonuses should be the objective of the HR department in this sector. With these, the mammoth task will not be difficult to accomplish. 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